In this Expert Insight Interview, Cactus Raazi discusses his latest book and how you can price your products and services more appropriately. Cactus Raazi is the author of Price: Maximizing Customer Loyalty Through Personalized Pricing.
This Expert Insight Interview discusses:
- More sophisticated ways to determine to price
- The pitfalls of adapting your price to your competition
- How to use personalized and adaptive pricing to make your customer feel special
The current commercial environment has trained people to be discount junkies, searching for the lowest price in every available opportunity, both in B2C and B2B commerce. Businesses know that they’re never going to pay list price unless they buy only one piece of a given item, which is seldom the case.
Pricing has become a considerable part of the sales cycle because there’s a lot of negotiation involved, and pricing rarely determined using the same attention to detail as, for example, product, branding and marketing.
Pricing is often done simply by looking at what your competitors are doing. Although there’s nothing to say that these prices are the correct ones, people still adapt to them and take them as gospel. This shows us that pricing is almost an afterthought to a certain extent.
It almost seems as if everybody is simply adapting to the price that someone else put out, while nobody is actually putting in the required analytics or research to determine what the optimal price is.
We live in an increasingly commoditized world. For example, let’s look at business hotels. There’s very little difference between the different brands, and they’re even often placed right next to each other, which means there are very few things to differentiate between them, apart from the price.
Therefore, if you’re a loyal patron of one of these chains, you should have the opportunity to receive a discounted price as it shows the hotel’s willingness to make its long-time customers feel special. As we enter a hyper-personalization period, pricing should not be left out of the conversation and should move with the times.
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.